Elmhurst Dairy cries for HELP

After touring the $5.5 million warehouse at Elmhurst Dairy, Jay Valentine, Vice President and General Manager of the facility, put his cards on the table to members of the City Council and the Greater Jamaica Development Corporation (GJDC).
“We definitely need help,” said Valentine.
In June, Bartlett Dairy – distributor for almost all Starbucks products, including milk, cups and coffee, in New York City – pulled the 10 year contract that was negotiated in 2003, making Elmhurst Dairy the exclusive provider of milk to all the Starbucks in the city. With more than 50 percent of yearly profits coming directly from Starbucks related production, more than 700 workers – 40 percent live in southeast Queens and are mostly minority workers – will be at risk of losing their jobs. So far, seven office workers have been let go, and management has had to cut 780 work time hours, equating to approximately 20 workers.
“We are really concerned right now,” said John Alexander, worker at the Elmhurst Dairy. “Many of our employees are from this community. Losing their jobs would be detrimental.”
Built on good faith after the contract was complete in 2003, Councilmembers Diana Reyna and Peter Koo, Assemblymember William Scarborough, GJDC director Richard Werber, among others, toured the 27,500 square foot facility led by Alexander. He took them from sector to sector pointing out all the machinery that is still turned on and the state-of-the-art equipment that has not been used since Starbucks production was halted. According to Valentine, the 1,400 city schools that the Elmhurst Dairy serves throughout the school year may see a 7-8 cent increase in price, resulting in approximately $8 million in new expenses. Valentine believes that the dairy may have to begin producing non-dairy related products in an effort to raise profits.
“We still think there is a way to improve our business just by being the city’s only dairy,” said Valentine, who suggested the possibility of distributing romaine lettuce to schools and providing electric power – generated on-site – to the community. He also suggested to the elected officials a “made in New York City” seal that could be stamped on products with additional incentives for buying local. Until a solution is mapped out, the situation remains grim around the dairy.
While Valentine – who began loading trucks at Elmhurst Dairy in 1982 – listed his ideas, officials agreed that something needed to be done to keep the facility in business. Councilmember Koo suggested taking on new contracts with New York City prisons and other coffee chains; ideas that Valentine has been strongly considering.
“Starbucks’ mission statement is somewhat contradictory. Either you are part of the community or you are not . . . I think New York City needs this place to stay open and we will look at anything we can to keep it that way,” said Valentine.
In a letter to Starbucks CEO Howard Schultz, Lamont Bailey, chairman of the GJDC, urged Starbucks to “settle this matter without the intervention of the court” and to “reconsider this decision based on fairness and the disruptive loss of long-held jobs by local workers.”
After receiving no response, a hearing was held on June 27, where Elmhurst Dairy withdrew an application for a preliminary injunction, but will still aggressively pursue a lawsuit on the grounds of breaking a contractual obligation, according to Frank Balon, general counsel for Elmhurst Dairy.
Starbucks and their newest milk producer and industry giant, Dean Foods, have filed motions for the case’s dismissal. No new court dates have been issued thus far.
“We think that our commitment to New York has been pretty clear and we are proud of it,” said Stacie Krum, a spokesperson for Starbucks, who cited a recent Request For Proposal (RFP) submitted by Starbucks that Elmhurst Dairy did not participate in. “We don’t have a contract with Elmhurst Dairy. Our contract is with Bartlett. We have the right to choose our suppliers.”
Krum said that Starbucks accounted for “less than 10 percent of their business as we understand it,” and that if jobs were ultimately affected, Bartlett Dairy may help Elmhurst Dairy employees find work.